What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Tompkins Financial (TMP) revenue becomes net income?

For TTM through Q1 2026, Tompkins Financial turned $579M of revenue into $167M of net income — a net margin of 28.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Tompkins Financial (TMP) gross, operating, and net margins?

For TTM through Q1 2026, Tompkins Financial reported a gross margin of 76.1%, an operating margin of 40.3%, and a net margin of 28.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Tompkins Financial (TMP) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Tompkins Financial (TMP) Income Statement Waterfall

Revenue

$579M

Gross Margin

+76.1%

Operating Margin

+40.3%

Net Margin

+28.9%

Income statement waterfall for Tompkins Financial (TMP) — TTM through Q1 2026

Net income: $167M

Margin breakdown for Tompkins Financial (TMP) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$579M	$579M
Cost of Revenue	-$138M	$441M
Gross Profit	$441M	$441M
Operating Expenses	-$207M	$234M
Operating Income	$234M	$234M
Pre-tax Income	$234M	$234M
Income Tax	-$66.1M	$167M
Net Income	$167M	$167M

Revenue$579M
Cost of Revenue-$138M
Gross Profit$441M
Operating Expenses-$207M
Operating Income$234M
Pre-tax Income$234M
Income Tax-$66.1M
Net Income$167M

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